October 2007

For upcoming media policy events, see=20
http://www.benton.org/event/2007/10/19/week/all/all/1

INTERNET/BROADBAND
FCC eases some broadband rules on AT&T
Fixing our fraying Internet infrastructure
The Impossible Dream of Competitive Broadband Marketplaces In Unserved Are=
as
Clinton Calls for National Broadband Strategy

BROADCASTING/CABLE
Center for Media and Democracy, Free Press File Another VNR Complaint
Chuck E. Cheese Agrees to Self-Regulate Kids=92 Marketing
CBS In Need Of Core Changes
31 Skidoo

TELECOM
The Utter Corruption of US Telecoms
Suit accuses Apple, AT&T of monopoly

GOVERNMENT & COMMUNICATIONS
Fight over court role in US eavesdropping

ELECTIONS & MEDIA
Google, Citing MoveOn Trademark, Dumps Collins Ads
AT&T, GE, Comcast Among Top 2008 Election Donors

QUICKLY -- Just Give Me Some Truth

INTERNET/BROADBAND

FCC EASES SOME BROADBAND RULES ON AT&T
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
The Federal Communications Commission (FCC) voted=20
late on Thursday to lift some regulations on=20
AT&T's broadband business. A divided FCC=20
partially granted AT&T's request to relax rules=20
that govern what the company can charge business=20
customers and rivals for access to some of the=20
its high-speed Internet lines. The FCC action=20
will eliminate a key requirement that AT&T file=20
tariffs with the agency disclosing the rates it=20
charges businesses and rivals for high-speed=20
access. However, Commissioner Robert McDowell=20
said the agency had left other key regulations in=20
place and created a new process for handling=20
complaints about the rates AT&T charges for=20
access. The decision came shortly before a=20
midnight deadline to act on AT&T's request. While=20
the three Republicans on the commission voted in=20
favor of it, the two Democratic commissioners=20
dissented. Commissioners Michael Copps and=20
Jonathan Adelstein, said there was not enough=20
evidence of competition to support AT&T's=20
request. To the contrary, they cited indications=20
that the market for high-speed access was=20
"anything but competitive." David Kaut, an=20
analyst with Stifel Nicolaus, said removing the=20
tariff rules would give AT&T a leg up in=20
negotiations with rivals and business customers seeking to lease access.
http://www.reuters.com/article/internetNews/idUSN1140974620071012
* FCC Grants AT&T Forbearance: http://www.fcc.gov/101207/FCC-07-180A1.pdf
* FCC Chairman Martin:
http://www.fcc.gov/101207/FCC-07-180A2.pdf
* Copps & Adelstein Joint Statement:
http://www.fcc.gov/101207/FCC-07-180A3.pdf
* Tate Statement:
http://www.fcc.gov/101207/FCC-07-180A4.pdf
* McDowell Statement:
http://www.fcc.gov/101207/FCC-07-180A5.pdf

FIXING OUR FRAYING INTERNET INFRASTRUCTURE
[SOURCE: C-Net|News.com, AUTHOR: Michael Kleeman, UC San Diego]
[Commentary] In our industrial and information=20
society, our daily lives depend on things we take=20
for granted: electricity, fresh water,=20
communications and our road system. In the same=20
way that levees and bridges need to be safe and=20
reliable, our communications networks need to=20
handle our growing Internet traffic. Imagine a=20
day without phone or Internet service, and then=20
imagine a week without them during a crisis. The=20
broadband infrastructure in the United States is=20
largely invisible to all but a few engineers.=20
Were it as visible as a road system it would=20
appear to be excellent in some places, but=20
riddled with potholes in others; heavily=20
congested at many times and locations; and in=20
need of massive redesign. The problem is that we=20
have reached a point of disconnect between the=20
traditional Internet's architecture and the needs=20
of today's customers. The technological formula=20
for broadband competitiveness is simple: deliver=20
more quality bandwidth to more people faster. A=20
national broadband policy is an essential part of=20
the formula. A central component of this policy=20
must drive us toward universal access to=20
broadband. High-speed Internet access is not a=20
luxury, but should be considered a necessity for=20
members of a developed country. Fifty percent,=20
even 75 percent, penetration is not acceptable.=20
We need ubiquitous broadband penetration in the=20
U.S. if we intend to claim leadership in the next Internet age.
http://www.news.com/Fixing-our-fraying-Internet-infrastructure/2010-1034...
6212819.html?tag=3Dnefd.top

THE IMPOSSIBLE DREAM OF COMPETITIVE BROADBAND MARKETPLACES IN UNSERVED AREAS
[SOURCE: AppRising, AUTHOR: Geoff Daily]
[Commentary] How can we get broadband into=20
underserved areas? There needs to be some reform=20
of how the Universal Service Fund and the USDA=92s=20
RUS program work. More focus needs to be put on=20
incentivizing the deployment of broadband in=20
areas that are unserved, where no broadband=20
provider exists. But there are many thorny issues=20
within all this, like whether the government=20
should only subsidize the first provider to a=20
market, or if they need to continue subsidizing=20
new entrants to ensure a level playing field, or=20
if they shouldn't be subsidizing anything at all.=20
The most common argument for how to spur the=20
deployment and improve the economics of broadband=20
is that if the government stays out of the way=20
competitive market forces will ensure the=20
deployment of faster networks at a lower cost.=20
But where this theory comes up short is in=20
situations where a competitive marketplace is=20
impossible as there aren't any competitors to=20
compete. State legislators and regulators from=20
rural states can't comprehend how competition is=20
the answer when they can't get one provider to=20
deploy, let alone multiple competing entities, in=20
many of their communities. Competition is great=20
and should be encouraged, but it=92s simply not the=20
answer for every community if our ultimate goal=20
is the speedy deployment of broadband connectivity to every home in America.
http://www.app-rising.com/gdblog/2007/10/the_impossible_dream_of_compet....

CLINTON OUTLINES NATIONAL BROADBAND STRATEGY
[SOURCE: Associated Press, AUTHOR: Philip Elliott]
Sen Hillary Rodham Clinton (D-NY) on Wednesday=20
called for a national broadband policy and called=20
for a permanent implementation of the research=20
and development credit. Called "Connect America,"=20
Clinton's broadband network would give businesses=20
incentives to go into underserved areas, support=20
state- and local-based initiatives and change the=20
Federal Communication Commission rules to more=20
accurately measure Internet access. Sen Clinton=20
would also create a new public private=20
partnership, modeled on the successful=20
ConnectKentucky program which has dramatically=20
improved broadband access. Sen Clinton said the=20
Internet is the new necessity for economic development.
http://hosted.ap.org/dynamic/stories/C/CLINTON_INNOVATION?SITE=3DOHCIN&S...
ION=3DHOME&TEMPLATE=3DDEFAULT
* Hillary Clinton=92s Innovation Agenda: Rebuilding the Road to the Middle =
Class
http://www.hillaryclinton.com/news/release/view/?id=3D3656

BROADCASTING/CABLE

CENTER FOR MEDIA AND DEMOCRACY, FREE PRESS FILE ANOTHER VNR COMPLAINT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Center for Media and Democracy and Free Press=20
filed their third complaint with the Federal=20
Communications Commission over TV stations and=20
cable systems airing unattributed video-news=20
releases. The first two involved more than 100=20
stations, and the latest only one, WGTU in=20
Traverse City, Mich., for airing three=20
unattributed videos in its newscasts. The=20
complaint was intended to remind the FCC that the=20
practice of airing VNRs that mimic newscasts is=20
still going on and to encourage it to take action=20
on more than 100 pending complaints stretching back more than one year.
http://www.broadcastingcable.com/article/CA6489229.html?rssid=3D193
* CMD, Free Press file new VNR Complaint
http://www.tvnewsday.com/articles/2007/10/11/daily.8/
* New VNR Catches Prove the Fake TV News Problem Continues
http://www.freepress.net/press/release.php?id=3D281

CHUCK E. CHEESE AGREES TO SELF-REGULATE KIDS' MARKETING
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In letter to House Telecommunications & Internet=20
Subcommittee Chairman Ed Markey (D-MA), Richard=20
Frank, chairman of CEC Entertainment, owner of=20
Chuck E. Cheese restaurants, agreed to take steps=20
to limit marketing to kids, the latest in a=20
series of companies to take such steps. In his=20
letter, Frank said the company would not engage=20
in product placement; would reduce the use of=20
third-party licensed characters in ads; and would=20
limit the showing of food products (pizza is a=20
staple of the chain) to under 10% of total=20
airtime and not promote food in the audio portion=20
of the ads (the restaurants are geared to=20
birthday parties and feature a variety of games=20
both video and nonvideo). The company also=20
pledged to promote "physical activity and healthy socialization."
http://www.broadcastingcable.com/article/CA6489306.html?rssid=3D193
* Chairman Markey Releases Letters from Food Companies
http://markey.house.gov/index.php?option=3Dcom_content&task=3Dview&id=3D...
4&Itemid=3D141

CBS IN NEED OF CORE CHANGES
[SOURCE: MediaDailyNews, AUTHOR: Diane Mermigas]
Wall Street is lowering earnings expectations for=20
CBS Corp. as they anticipate the worst for the=20
advertising-dependent, pure-play broadcaster=20
being squeezed by shaky program ratings and a=20
soft advertising market. But those warnings may=20
not go far enough. With 90%-plus advertising=20
exposure, CBS is not only more vulnerable than=20
its media peers to a possible economic recession=20
but also to something far more devastating and=20
permanent: the replacement of television's random=20
advertising pricing and placement with more of a=20
fully accountable, front-end automation system=20
being forged by Google. Google's automated=20
process allows smaller advertisers the same=20
targeted consumer reach as big advertisers, and=20
lowers the cost of ad placement while boosting=20
margins. It also allows content owners to charge=20
more appropriate market prices for their=20
inventory while reaching a broader range of=20
consumers. Google's overhaul ad buying process is=20
gaining traction. It will be broadly adopted to=20
become a universal system of advertising=20
measurability and accountability within five years
http://publications.mediapost.com/index.cfm?fuseaction=3DArticles.showAr...
leHomePage&art_aid=3D68985

31 SKIDOO
[SOURCE: The Huffington Post, AUTHOR: Marvin Kitman]
[Commentary] Everyone has their own reason, but=20
Kitman won't be voting for Rudy Giuliani because=20
of WNYC/31. Ch. 31 was the only municipally owned=20
TV station in the nation. The Federal government=20
built it in 1961 as an experiment to test how UHF=20
would work in a crowded urban media environment,=20
and then turned it over to the city in 1962.=20
During the next decade or two, our other major=20
public TV station, the famous WNET/13's,=20
programming had grown highly forgettable.=20
Suddenly in August 1995, Rudy G. decided to sell=20
the station. The summer of that year, you might=20
not remember, was the height of the media frenzy.=20
Media barons were running amok buying and=20
merging. Every day it seemed somebody was even=20
buying CBS. In the auction Rudy mandated, the=20
station went to a consortium of ITT and Dow-Jones=20
for $207 million. Now this was a station on the=20
UHF dial that was watched by two and a half=20
people, whose ratings in the last Nielsen book=20
for the New York City market were near Ch. 8 of=20
New Haven and Ch. 10 in Philadelphia. $207=20
million? It was as if there was something in the=20
water broadcasters were drinking. Rudy=20
immediately went on the balcony to deliver one of=20
his pronuncimentos crowing about the deal. It=20
was, the folks were led to believe, the most=20
brilliant coup in the history of municipal=20
finance since Peter Minuet swindled the Indians=20
out of Manhattan Island for $24. But by 1996,=20
people realized that because of the digital TV=20
transition, ITT and Dow-Jones had purchased six=20
channels to program instead of one. By unloading=20
the station for a crummy 207 million, Rudy G.=20
bartered away the city's chance to make a real=20
killing. Media sales were absolutely insane. A=20
conservative estimate of six to ten times is, well, conservative.
http://www.huffingtonpost.com/marvin-kitman/31-skidoo_b_68031.html

TELECOM

THE UTTER CORRUPTION OF US TELECOMS
[SOURCE: The Huffington Post, AUTHOR: Pachacutec]
[Commentary] The reason the telecom industry is=20
so bad is because it has bought Congress, written=20
anti-competitive, anti-consumer regulations into=20
law, so that its services get worse and worse=20
while it places itself on precisely the business=20
path to destruction the US auto industry has=20
already trod. It lies to consumers on an=20
individual level, and, more broadly, launches=20
dishonest anti-net neutrality campaigns and seeks=20
to absolve itself from its participation in=20
illegal surveillance of US citizens. Oh, and it=20
tries to destroy free speech, thank you very=20
much. The more it builds its business model=20
around anti-competitive, anti-consumer corporate=20
welfare and lies, the more it must cling to=20
protectionist, anti-innovation strategies just to=20
survive, systemically cutting the knees out from=20
small businesses and innovative startups. It's a=20
slow, steady slog toward business death. Just ask=20
Ford how that works out. What's more, the rumor=20
is the Senate version of the new FISA bill, with=20
the blessing of Sen Harry Reid (D-NV) and the=20
Democrats, will include retroactive immunity for=20
the telecoms for their lawbreaking. We've been=20
fighting today to prop up the House progressives=20
to fight for a better version of the FISA bill in=20
the House, but we also need to let Harry Reid and=20
the rest of the capitulation caucus in the Senate=20
know that retroactive immunity is purely=20
unacceptable during the next few days. Gee, are=20
there any Democratic senators who might consider=20
launching a filibuster on the Senate FISA bill,=20
even against the will of the leadership, like=20
maybe, anyone from a state that likes cheese, or=20
a senator who guest blogs at SavetheInternet.org=20
or anyone running for president who asserts he's=20
truly committed to the Constitution?
http://www.huffingtonpost.com/pachacutec/the-utter-corruption-of-u_b_679...
html

SUIT ACCUSES APPLE, AT&T OF MONOPOLY
[SOURCE: Associated Press]
Complaints over Apple's use restrictions and=20
recent software update for the iPhone have=20
erupted in two lawsuits alleging Apple and its=20
carrier partner, AT&T, engaged in illegal=20
monopolistic behavior. Two separate lawsuits were=20
filed in San Jose =97 one in federal court and the=20
other in state court and both seeking=20
class-action status. The federal case accuses the=20
companies of unfair business practices and=20
violations of antitrust, telecommunications and=20
warranty laws. The state case raises some of the=20
same allegations. By not allowing consumers to=20
modify their iPhones to work on other carrier=20
networks, the two companies conspired from the=20
beginning of their partnership to maintain a=20
monopoly, the federal lawsuit alleges. The=20
companies are unlawfully restricting consumer=20
choice by preventing users from "unlocking" their=20
iPhones, and Apple intentionally disabled=20
unofficial third-party programs or rendered=20
unlocked phones useless with its software update, the lawsuit alleges.
http://news.yahoo.com/s/ap/20071011/ap_on_hi_te/apple_at_t_iphone_lawsui...
ylt=3DAp0ExP1PG.gs0hacqYkDBsUjtBAF

GOVERNMENT & COMMUNICATIONS

FIGHT OVER COURT ROLE IN EAVESDROPPING
[SOURCE: The Christian Science Monitor, AUTHOR: Peter Grier]
To what extent should courts become involved in=20
the oversight of sensitive US eavesdropping=20
operations? That is one of the most crucial items=20
at issue in the developing struggle between=20
congressional Democrats and the White House over=20
new legislation to extend the government's=20
surveillance authority. Key House Democrats say=20
judges should look over the National Security=20
Agency's shoulder more often. Under a bill=20
approved by two House committees Wednesday, if=20
the NSA wants to listen in on foreigners outside=20
the United States but a possibility exists that=20
these targets might communicate with Americans,=20
then the government needs to get a blanket court=20
order approving the effort for up to a year. The=20
Bush administration says that provision could=20
hobble American intelligence. In practical terms,=20
it's always possible that foreign targets might=20
call the US, say US officials. Thus, the NSA=20
might have to get court approval even for=20
wiretapping operations aimed at foreign-to-foreign communications.
http://www.csmonitor.com/2007/1012/p03s02-uspo.html
* Should AT&T be held legally responsible for any NSA cooperation?
http://www.news.com/8301-13578_3-9796284-38.html

ELECTIONS & MEDIA

GOOGLE, CITING MOVEON TRADEMARK, DUMPS COLLINS ADS
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Google has removed paid ads posted by the=20
reelection campaign of Sen. Susan Collins=20
(R-Maine), raising questions about whether the=20
search engine is relying on a narrow view of=20
trademark law to put the kibosh on political=20
speech aimed at one of its public policy allies,=20
MoveOn.org The Collins campaign posted several=20
ads last weekend that included the name of=20
MoveOn, the liberal political advocacy group that=20
has already started to run negative ads about Sen=20
Collins on Maine TV stations. A few days after=20
the Collins ads went up, Google notified the=20
campaign that the ads had been taken down,=20
because MoveOn had claimed trademark violations.
http://www.multichannel.com/article/CA6489314.html?rssid=3D196

AT&T, GE, COMCAST AMONG TOP 2008 ELECTION DONORS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
AT&T topped the list of communications companies=20
donating money in the 2008 election cycle, with=20
Comcast and General Electric also making the top=20
20. AT&T came in at No. 5 with $1,094,144 in=20
contributions, with the majority of that (55%)=20
going to Republicans. Comcast, which ranked 14th=20
among all donors in the 2008 cycle with Democrats=20
getting a whopping 72% of its $747,870 in=20
contributions. Time warner, Verizon, the=20
Communications Workers of America and the=20
National Cable and Telecommunications Association=20
are also big givers and also leaning toward Democrats.
http://www.broadcastingcable.com/article/CA6489276.html?rssid=3D193

QUICKLY

JUST GIVE ME SOME TRUTH
[SOURCE: The Huffington Post, AUTHOR: Peter Mehlman]
[Commentary] The problem is that The Information=20
Age is exactly the opposite. There's no longer=20
anything even close to a consensus of where we=20
gather truth. This isn't the information age,=20
it's the blather-ation age. All we have is a=20
trillion sources from which to choose truths we=20
want to believe. We spend our lives preparing for=20
an argument we'll never have with a person we'll=20
never meet whose opinions we could never change.
http://www.huffingtonpost.com/peter-mehlman/just-give-me-some-truth_b_67...
.html
--------------------------------------------------------------
... and we're outta here -- depressed about the=20
Cubs, but, as always, counting on next year.
--------------------------------------------------------------
Communications-related Headlines is a free online=20
news summary service provided by the Benton=20
Foundation (www.benton.org). Posted Monday=20
through Friday, this service provides updates on=20
important industry developments, policy issues,=20
and other related news events. While the=20
summaries are factually accurate, their often=20
informal tone does not always represent the tone=20
of the original articles. Headlines are compiled=20
by Kevin Taglang headlines( at )benton.org -- we welcome your comments.
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